IT eyes lookut for large deposits in coop banks, high-value transactions

IT eyes lookut for large deposits in coop banks, high-value transactions

Mangalore Today News Network

Mangaluru, Nov 11, 2016: Reports indicate that cooperative banks are under the scanner too. It seems to be true with the Directorate of Income Tax (intelligence and criminal investigation) detecting scores of deposit entries worth over Rs 50 lakh in 25 such banks. Confirming this suspicion of the Directorate is the fact that these entries have not been reported to the tax enforcement authorities as per the Income Tax Act.

At a half-day workshop for sub-registrars, representatives of urban cooperative banks and regional transport officers from DK, Uttara Kannada, Udupi and Shivamogga districts on Thursday, Director of IT (I and CI) R Ravichandran said a co-operative bank in DK alone had 2,500 such entries each above Rs 50 lakh and worth over Rs 4,500 crore while remaining banks in Karnataka had over 59,000 such entries worth over Rs 8,000 crore.

Responding to notices issued to those 2,500 persons with deposits in DK Bank, about 300 responded and 100 opted for Income Declaration scheme and the rest opted to file revised IT returns. The suspicions were aroused when cooperative banks that should furnish annual information report, started to do so irregularly or even not submitting the same. The directorate conducted inspections across Karnataka since a year and found these irregularities.

Noting that department’s focus on cooperative banks is the first of its kind in India, he noted that reported evasions could net considerable amount of tax. Another set of persons not reporting high-value transactions are sub-registrars — about 282 in the state— about 60% of whom have not been reporting land transactions worth over Rs 50 lakh. Notices have been issued to defaulting sub-registrars, who have to pay Rs 100 per day fine from date of registration.

They are also bound to pay Rs 500 per day after 30 days of the directorate issuing the notice and this amounts to around Rs 1.5 lakh to Rs 2 lakh. Intention of the department is not to penalise either bank or registration department officials; but to educate them. In hiding information or not sending statements, officials are aiding tax evasion which is against national interest. Department has the power to inspect offices at any time and get documents concerned, he pointed.

In case of transport department, they should obtain PAN of every new vehicle owner, except in case of two-wheelers and IT department will get these details if needed. Keeping this in mind, he exhorted the participants to file annual information reports to the directorate as mandated by the IT Act. The directorate keeps watch of all high value transactions, including property, cash deposits, credit card purchases and purchase of motor vehicles and so on, he added.